OpenSea abandons lagging NFT trading model in crypto asset aggregator pivot

Source Cryptopolitan

OpenSea will pivot from a leading NFT platform into a crypto asset aggregator. Despite a relaunch with a new version to revive activity, the NFT space has not recovered enough to generate sufficient activity. 

OpenSea may pivot to become a multi-asset aggregator, as the NFT market has not generated sufficient activity. The startup will rebuild as a token marketplace, also including memecoins, in a bid to recover lost trading volumes. 

NFT never really recovered from the 2022 crash. Since then, Opensea has reduced its workforce and has sought new ways of growing trading activity. OpenSea still leveraged its brand into a multi-coin trading platform across 22 chains, tapping the recent meme token craze. 

The company’s CEO Devin Finzer is overseeing the changes at OpenSea, trying to transform it into a full trading platform. The OpenSea startup still managed to attract millions of website visits, while retaining some NFT auction activity. 

OpenSea token trading gains traction

OpenSea has recovered its volumes dating back to September, as its platform combines NFTs and tokens. NFTs are still used for airdrops and as perks, though not at the same valuation and trading rate. 

OpenSea has had its best month in the past three years in October, based on a Forbes magazine report

NFT platform OpenSea pivots to become a crypto asset aggregation platform
OpenSea regained traction as a multi-asset platform, recently posting peak dollar volumes. | Source: Dune Analytics

OpenSea has taken up the model of an aggregator, similar to services like Jupiter, CowSwap, 1inch, and others. The platform also takes 0.9% in fees for every transaction, securing a recurrent source of revenue. As the crypto market accelerated DEX trading, aggregators became one of the most successful apps. 

As a result, OpenSea achieved over $16M in fees for the past two weeks. At the same time, the regular inflows allow OpenSea to continue its role as an NFT platform for some of its best-performing collections. Newer cohorts of NFT speculators are also appearing, undeterred by the previous price slide of collectibles. 

OpenSea has now shifted toward traders and speculators, as NFT creators and artists lost some of their importance as customers. OpenSea has retained its royalty mechanisms for some types of NFTs. As the founder of the Bored Ape collection noted, the OpenSea royalties attracted even more creators, building the landscape of high-profile collections, which still retain a high floor price.

OpenSea renews marketing with Treasure Chest airdrop

OpenSea now aims to keep its brand hot among crypto users. Recently, the platform released another airdrop, rewarding even older users for the gas fees paid for NFTs. OpenSea users had a deadline as of October 15 to connect their wallets and claim the Treasure Chests, securing additional future airdrops. 

The chests contain a mix of NFTs and tokens, though some users have complained that the gas burden was higher than the reward the platform offered. 

In the meantime, OpenSea is preparing for its SEA token generation event, with allocations for Treasure Chest holders. 

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